Florida Awards Groundbreaking Highway Contract

The Florida Department of Transportation has tapped a team led by ACS Infrastructure Development of Coral Gables, Fla., to design, build, finance, operate and maintain for 35 years the $1.8-billion I-595 Corridor Improvement Project. The approximately 10.5-mi Interstate 595 project in Broward County will add three reversible express variable toll lanes at grade in the median and additional auxiliary lanes, reconstruct entrance and exit ramps to remove merge conflicts, connect a frontage road between Davie Road and State and implement a bus rapid transit system. FDOT anticipates a summer 2009 start, with work to wrap up in 2014.

“There is no road project like this in the history of FDOT,” says FDOT District 4 Secretary Jim Wolfe. “We will deliver these express lanes and braided ramps and all of the improvements 16 years earlier than projected, and we are doing it at a present-day project cost of $275 million less than conventional [design-bid-build].”

FDOT posted a notice of intent to award on Oct. 24, 2008, selecting the Spanish-led consortium ACSID as Best Value Proposer. A joint venture between Dragados USA of New York and Grandi Lavori Florida (GLF Construction Corp.) of Miami serve as lead contractors. Earth Tech of Miami is the lead engineering firm. ACSID is the equity partner and responsible for operations and maintenance.

Wolfe pegs construction costs at about $1.2 billion – $275 million less than the department internally estimated. Both bidders modified the original plans from Reynolds, Smith and Hills of Jacksonville, the owner’s representative for design. “They provided some innovation in their design, and they did maximize the use of existing structures and pavement,” says Joe Borello, FDOT project manager. “They reduced quite a bit of walls and bulk heading along the canal.

More than 100 FDOT employees and consultants spent a month reviewing ACSID’s bid and another from Express Access Team of San Francisco. The bidders submitted thousands of plan sheets and plans on Sept. 6, 2008, says Phil Schwab, RS&H project manger. The FDOT team scored the bids for technical, financial and annual maximum availability payments (MAP). “We recalculated every curve, every elevation, checked the standards, the lane widths, the structural design, the utility clearances in detail,” Wolfe says.

Wolfe praised both bidders as having submitted solid designs, but the bid from EAT came in substantially higher. It had an annual MAP of $144.49 million vs. ACSID’s $63.98 million, something Wolf attributes to its concern about risks. PB Americas, Tampa, was EAT’s lead engineering firm and the lead contractor was a joint venture of PCL Civil Constructors of Tampa and Archer Western Contractors, Jacksonville, Fla. EAT scored higher on its technical plan, but the MAP score and higher construction cost of more than $2 billion dominated the final total score. FDOT evaluators priced out the proposed changes and found that the ACSID plan came in close to the agency’s unit prices.

State long-range work funds are budgeted for the project. FDOT does not begin paying for the I-595 enhancements until the job is 100% finished, then lump sum payments totaling $685 million begin. They are spread out over seven years. Any delays in permitting, utility or right-of-way clearance or construction will cost the concessionaire. “There is a huge incentive to get it done as quickly as possible with quality,” Schwab says.

The state will receive funds from the time-of-day toll rates, which are not yet determined. Gerry O’Reilly, director of transportation development for FDOT district 4, says FDOT plans to maximize throughput on the roadway rather than the toll revenue. “Probably in 15 or 20 years, the tolls will start paying off the availability payment and turn a profit,” Wolfe says.

To receive its availability payments, the concessionaire must ensure the road remains available and maintained to the standards FDOT set or the state deducts money from the payment. “There’s a guarantee for 35 years you are going to get what you wanted for a set price,” O’Reilly says.

Firms on Miami Airport Job Sue Bonding Companies

Although Miami International Airport’s $1.1-billion South Terminal opened to passengers over a year ago, several construction firms have now filed lawsuits for millions of dollars for changes made to the project.

Hensel Phelps Construction Co., Greeley, Co., began work in 2003 on a $169-million contract for construction of the South Terminal and renovations on an adjacent concourse. In late October, it sued the construction manager, a joint venture of Parsons Corp., Pasadena, Calif., and Odebrecht USA, Coral Gables, Fla.; the separate firms and bonding companies Zurich American Insurance Co., Fidelity and Deposit Co. of Maryland, and American Home Assurance Co., in Miami-Dade Circuit Court for about $90 million.

“The complaint alleges that the majority of our damages are the result of late and untimely changes issued by the county, as well as changes necessary to complete and correct a defective design issued by the county,” says Bob Majerus, general counsel for Hensel Phelps. He adds that Hensel Phelps could not sue Dade County, because the firm’s contract was with Parsons-Odebrecht.

Four subcontractors—Fred McGilvray Inc., Miami; Lotspeich Co. of Florida, Fort Lauderdale; Poole and Kent, Baltimore; and Dynalectric Co., Dulles, Va.—also filed suit in the U.S. District Court in Miami against Travelers Casualty and Surety Trust, Zurich American Insurance Co. and American Home Assurance Co. for about $30 million. Braude & Margulies, Washington, D.C., represents the four subcontractors. Partner Herman Braude says the bonding companies are responsible for payments that are still due a year after completion. “Changes to the mechanical, electrical and drywall were beyond the original scope,” he adds.

Lawyers for both cases hope a settlement can be reached. But Majerus adds, “We had many meetings prior to filing the suit that were unsuccessful.”

Law firm Moye, O’Brien, O’Rourke, Pickert & Martin represents Parsons-Odebrecht, the individual firms and some of the bonding companies. Partner Jim Moye says his clients continue to negotiate with the Miami-Dade Aviation Dept. and have another meeting scheduled for early November.

Parsons-Odebrecht has certified a $65.2-million claim to the county on behalf of itself and subcontractors. “Parsons-Odebrecht has and continues to discuss resolution of all the claims submitted by its trade contractors with Miami-Dade Aviation Department,” says Odebrech CEO Gilberto Neves. “These negotiations have been largely positive, and we are optimistic that we will reach a resolution.” But he notes that “some subcontractors and trade contractors have pursued other avenues to resolve their claims.”

Parsons-Odebrecht currently is working on the airport’s $1.1-billion North Terminal and the $134.9-million related people-mover system. It also won a contract to design and build the $259-million automated people mover to the Miami Intermodal Center.

Florida Contracts Fall 44% in October

McGraw-Hill Construction, publisher of Southeast Construction, reported that the value of new Florida contracts declined by 44% overall in October, compared to the same period of a year ago. According to the latest report, the value of October contracts for future construction totaled approximately $2.1 billion, compared to last October’s nearly $3.7 billion total.

For the most recent month, all three sectors used by McGraw-Hill Construction experienced double-digit percentage declines. Residential fell 55% compared to last October to total $703.7 million. The nonresidential sector fell 41% to total $889.7 million. The nonbuilding sector declined by 21% to total $465.2 million.

Moss Completes Ivy Tower in Downtown Miami

Moss & Associates of Fort Lauderdale has completed the Ivy residential/mixed-use tower in downtown Miami, a $121 million construction project.

Located along the Miami River, the Ivy is a 45-story residential tower with 504 condominiums and nine levels of parking, along with restaurants and retail shops.

Rosen Expanding, Refurbishing Orlando Hotels

Rosen Hotels & Resorts of Orlando announced it is undertaking an estimated $100 million to $200 million expansion and renovation of six of its seven Orlando hotels within the next seven years.

The plan will begin in February with the refurbishment of approximately 2,700 guest rooms at Rosen’s four leisure properties — Quality Inn International, Rodeway Inn International, Quality Inn Plaza and Comfort Inn Lake Buena Vista — for an estimated $40-50 million. The project is scheduled for completion by 2011.

Rosen also will add 100,000 sq ft of meeting space each to the Rosen Plaza and Rosen Centre hotels, as well as parking garages and walkways connecting each hotel to the Orange County Convention Center. The additional meeting space at each hotel is expected to be completed by 2012, bringing Rosen Plaza’s meeting facilities from currently 60,000 sq ft to 160,000 sq ft and Rosen Centre’s from currently 106,000 sq ft to 200,000 sq ft. Upon completion of those projects, Rosen will add 400-700 rooms to Rosen Plaza by 2016.

Rosen’s recently completed Shingle Creek Resort will not undergo improvements or expansion as part of the plan.

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